Sep 1, 2010 10:39 AM

The US Department of Agriculture (USDA) is amending the regulations issued under the Perishable Agricultural Commodities Act (PACA) to increase license fees.

Annual license fees of $550 are raised to $995. Fees for branch locations are increased from $200 for branch locations in excess of nine, to $600 for each branch location. The maximum amount a licensee will pay per year has risen from $4,000 to $8,000. Additionally, the regulations have been amended to remove provisions to phase out license fees by retailers and grocery wholesalers and the provisions to phase in triennial license renewal for retailers and grocery wholesalers as these processes have been completed. Finally, the regulations have been amended to eliminate the multi-year license renewal option for commission merchants, brokers, and dealers.

This rule is effective Sept 23, 2010, except for the amendment to Section 46.6(b), which takes effect Oct 1, 2010.

PACA establishes a code of fair trade practices covering the marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce. The act protects growers, shippers, distributors, and retailers dealing in those commodities by prohibiting unfair and fraudulent trade practices. In this way, the law fosters an efficient nationwide distribution system for fresh and frozen fruits and vegetables, benefiting the whole marketing chain from farmer to consumer. USDA’s Agricultural Marketing Service (AMS) administers and enforces PACA.

For further details, contact Jeffrey F Davis at 202-205-7847 or e-mail jeffrey.davis4@ams.usda.gov.